The pied-à-terre surcharge has exactly three ways to $0 — and a longer list of things owners believe will work that don't. Every exemption must be claimed and documented, not assumed: DOF's published application deadlines are August 21, 2026 for residential homes and condos and August 24, 2026 for co-op units, and the date printed on your own DOF letter governs. Here is each exemption in depth, with the documentation that actually satisfies DOF's final rules.
Exemption 1 — It's your primary residence
A home you occupy more than half the year as your primary residence owes no surcharge, whatever its value. When DOF's records say otherwise and a notice arrives, you have 30 days to rebut with the documents the final rules specify: your most recent state or federal income tax return showing the address, or a combination of two documents — a New York State driver's license or non-driver ID, a voter identification card, or other documentation DOF deems acceptable. Assemble the folder before you need it.
Exemption 2 — An immediate family member lives there
A unit occupied more than half the year by an immediate family member as their primary residence is exempt. The statute's list is specific: spouse, child, sibling, parent, grandparent, grandchild. Your daughter living in the apartment full-time qualifies; your cousin, your friend, or your daughter using it on weekends does not. Document the family member's occupancy the same way you would your own — their tax return, license or voter registration at the address.
Exemption 3 — A real 12-month lease
A unit under a bona fide arm's-length lease of at least 12 months to a tenant who uses it as their primary residence owes nothing. Every word carries weight: arm's-length means a market-rate lease to an unrelated tenant — installing a friend at a nominal rent fails; 12 months excludes seasonal and short-term arrangements; the tenant must be a natural person making it their primary home — corporate housing doesn't qualify; and the lease must actually exist — a unit listed for rent but sitting empty remains taxable. Availability is not occupancy, and intent is not a lease. With Manhattan rents at or near record levels, this is the exemption that most often beats the surcharge on pure math — the break-even framework is here.
What does NOT work
| The theory | Why it fails |
|---|---|
| "I own it through an LLC" | The statute attributes ownership through LLCs, partnerships, corporations and trusts to the people behind them. If no single person holds a majority of the entity, the unit can be taxed regardless of who lives there — unless a qualifying tenant occupies it. |
| "My LLC is owned by another LLC / a trust" | Tiered structures are disregarded — the look-through continues until it reaches natural persons, and the analysis runs on the entire interest the entity holds. A holding company adds no protection. |
| "I have a condo abatement / STAR" | The statute says existing abatements, credits and exemptions do not apply against the surcharge. It stacks on top of your current bill. |
| "It's listed for rent" | Taxable. The exemption requires an actual executed 12-month arm's-length lease — not a listing, not availability, not intent. |
| "I'll paper a lease to a friend at $1" | Not arm's-length — and dangerous. DOF's rules penalize false documentation at 50% of the surcharge on top of the reimposed tax. |
| "I use it 5 months a year, that's almost half" | The line is more than half the year as a primary residence. Heavy personal use of a second home is precisely what the statute taxes. |
Which side of the line are you on?
Free emailed report: your unit's official DOF market value, whether the surcharge applies, and which exemption path — if any — realistically fits your situation. Usually within the hour.
Check My Unit — FreeClaiming: deadlines and mechanics
- Application deadlines: August 21, 2026 (residential homes and condos) · August 24, 2026 (co-op units) — the date printed on your letter governs over anything published online.
- After a notice: the 30-day rebuttal window runs from your notice — see the step-by-step.
- Get the paperwork right: false primary-residence documentation draws a 50%-of-surcharge penalty; misleading valuation submissions up to 300% of the understatement (capped at 50% of the surcharge).
- Each year stands alone: the surcharge applies for any year the property is not a primary residence — an exemption established this year is not permanent, and a lease that lapses puts you back on the roll.
Disclaimer. This page is educational information from Conquest, a licensed New York real estate brokerage. It is not legal, tax, or accounting advice, and no advisory relationship is created by reading it. Deadlines and figures reflect DOF's published rules and roll as of the "last updated" date above; the date printed on your own DOF letter always governs.